U.S.-listed Freedom Holding Corp founder says he will buy Russian unit

Timur Turlov, CEO of Freedom Finance brokerage poses for a portrait after the interview in the office in Moscow, Russia October 10, 2019. Picture taken October 10, 2019. REUTERS/Maxim Shemetov

June 1 (Reuters) – U.S.-listed Freedom Holding Corp (FRHC.O), a financial services firm focused on East Europe and Central Asia, will sell its Russian arm to the company’s founder Timur Turlov in the second quarter.

Relations between Moscow and the West have worsened markedly since Feb. 24 when Russia sent tens of thousands of troops into Ukraine in what the Kremlin calls “a special military operation.” The move prompted unprecedented western sanctions that hammered Russia’s financial markets and the economy.

Turlov, Freedom Holding Corp’s 34-year-old founder and chief executive, said in an interview with Reuters he will buy Russia-based Freedom Finance from the U.S. holding company as political tensions and related restrictions take their toll.

“This is being done so the Russian company can continue to independently carry out business in Russia,” said Turlov.

“Today we do not see the possibility to keep the Russian business inside the U.S. holding due to the ban on any investment in Russia for U.S. residents as well as due to a large number of restrictions for deals with non-friendly non-residents.”

In the first phase of the deal, Turlov will buy the Russian business…